Royal Caribbean shares big 2024 plans passengers will love

Royal Caribbean knows how to make an entrance.

Icon of the Seas entered the market as a celebrity after what seemed like a year of hype videos and anticipation. It helped that the world's largest cruise ship took the cruise line's Oasis-Class innovations to the next level.

Related: Royal Caribbean quietly fixes 3 big passenger pain points

It was a white-paper build — a ship that literally started as a blank piece of paper — but the cruise line allowed its design team to borrow the best features from other ships. 

That's why Icon of the Seas has returning favorites like Playmakers, Schooner Bar, and an enhanced Central Park alongside numerous new features like the Pearl, the indoor AquaDome, and the new Surfside family neighborhood.

Royal Caribbean created something truly new that's also familiar. The cruise line also fixed pain points like elevator queues and not having views of the ocean on public decks.

Icon of the Seas, however, was not the cruise line's only innovation over the past year. Royal Caribbean also added the adults-only Hideaway Beach to its Perfect Day at CocoCay private island and has plans for two private Beach Clubs, one in Nassau and one in Cozumel.

Royal Caribbean has a simple formula that drives its plans moving forward.

Royal Caribbean has a bold plan

Royal Caribbean Chief Executive Jason Liberty laid out the company's plans for its namesake brand during its fourth-quarter-earnings call.

"Our proven formula for success remains unchanged. Moderate capacity growth, moderate yield growth, and strong cost controls lead to enhanced margins, profitability, and superior financial performance," he said. 

"Our operating platform is bigger and stronger than ever. We have the leading brands in their respective segments, the best people, and the best and most innovative fleet and destinations,"

The CEO says its newer ships and Perfect Day at CocoCay give it a major edge.

"We remain intensely focused on delivering a lifetime of vacations for our guests and long-term value for our shareholders," the executive said. "We are leading the vacation industry and creating exciting new products and experiences, which in 2024 include game-changing ships and the expansion of our highly rated destination, Perfect Day at CocoCay." 

Icon of the Seas, he noted, has been a star revenue driver.

"Our new ships are performing exceptionally well. And while we always expect to see strong trends when we introduce new ships, Icon of the Seas is definitely living up to her name and has taken things to a whole new level in every way," Liberty said.

New ships drive battle vs. land-based vacations

Utopia of the Seas will sail three- and four-day itineraries out of Port Canaveral, the first time the cruise line had dedicated a new ship to shorter sailings.

"Demand and pricing for Icon has been incredibly strong. This year, we are also thrilled to take delivery of the sixth Oasis class ship, Utopia of the Seas, which will set the stage for the ultimate weekend getaway," the CEO added.

The challenge, he said, is not stealing share from other cruise lines but in competing with land-based vacations.

"New ships and their incredible innovative experiences further accelerate our efforts to steal market share from land-based vacations," Liberty said.

Coco Cay is a big part of that plan.

"We completed the expansion of Hideaway Beach at Perfect Day at CocoCay just in time to welcome Icon of the Seas, upsizing the benefit of this strategic asset," Liberty said. "Hideaway Beach is our newest adult-only ultimate beachfront paradise at Perfect Day at CocoCay, which expands our capacity on the island to over three million guests annually."

Perfect Day at CocoCay has the highest passenger rating of any Royal Caribbean destination. The cruise line plans to build on that popularity.

"About two-thirds of Royal Caribbean International Caribbean guests will visit Perfect Day at CocoCay this year, allowing us to deliver high satisfaction scores and higher margins across the fleet," Liberty said.